Gossip is a common social activity that children admit to engaging in. Although children disapprove of negative gossip (Kuttler, Parker, & La Greca, 2002, Merrill‐Palmer Quarterly, 48, 105), less is known about how it is perceived morally compared to positive gossip and how this changes developmentally as children enter adolescence. Interestingly, misbehaviours are evaluated differently depending on who commits the act and whom it targets (Slomkowski & Killen, 1992, International Journal of Behavioral Development, 15, 247), but this has not been examined in the context of gossip. This study examined children’s moral evaluations of negative and positive valence gossip and how this changed depending on the listener’s relationship to the sharer and target. Children (N = 134, ages 8–16) completed vignettes, evaluating the sharer’s action from the listener’s perspective, a 2 (valence: negative/positive) × 4 (relationship type: friend/unfamiliar classmate of the sharer and target) design. Additionally, the gossip topic was about the target’s behaviour with consequences for him/herself or another (target behaviour type: individual/relational vignettes). The main findings revealed that negative gossip in the sharer–classmate, target–friend condition was rated most negatively. Furthermore, in the individual vignettes condition, positive gossip in the sharer–friend, target–friend condition was rated more negatively than the sharer–classmate, target–friend condition. Girls rated negative gossip more negatively than boys, and adolescents rated gossip more positively than children. Overall, this research allows us to better understand when gossip is viewed as acceptable or unacceptable during an important developmental period.